The Third Theory Is Monopoly Capitalism

He talks about how the Standard Oil company offered the same quality of oil for lower prices than he could do. Other situations like this was the Credit Mobilier scandal were railroad companies got paid a lot of money but built little railways with the money keeping the rest.

The world is full of financial hardship, and American society possesses a great deal of controversy concerning lending. Unfortunately, short term lending, such as payday loans or title loans, creates a structural void within American society. According to Wikipedia, “Structural inequality is defined as a condition where one category of people are attributed an unequal status in relation to other categories of people” (wilipedia.com). When working class Americans apply for a payday, the unequal status between upper and middle class possess a bigger separation financially. The never-ending process of a short term financial fix becomes lifelong debt. Thus, middle class society becomes lower class society. Eventually, working class society will struggle to say above the poverty line. In addition to an imbalance in society classes, short term lending targets consumers who life paycheck to paycheck. In Rigging the Game by Michael Schwalbe, the author explains the reproduction of inequalities. Schwalbe discusses the different kinds of capitals human, social, and cultural (10). The three capitals unknowingly shape Americans social system. Many businesses capitalize on these capitals knowing no laws or regulation exists to stop them from capitalizing on individuals who no faults of their own were born into these unfair capitals. As a result, short term lenders possess the ability to have extremely high interest rates and outrageous fine print penalties because there is little

The opportunity for power and competition seems to also be one of the largest intersecting parts of this whole debacle. In the film, I heard and saw that these bankers placed bets on the crash of all the loans. These bankers knowingly put countless families and individuals in

Kenneth Lay, (former Enron Chairman and CEO) and Enron poured millions of dollars into both political parties, cultivating access and using the entrée to lobby Congress, the White House and regulatory agencies for action that critical to the energy company’s spectacular growth.

Predatory lending has caused many conflicts in the American society. Victims who fall for predatory lending are

According to Landstrom (1998), the sociological theories are in the level of analysis which is traditionally the society. Reynolds (1991) identified social networks, life course stage context, ethnic identification and population ecology as the four social contexts that relates to entrepreneurial opportunity.

The public were abused, judges and legislatures bribed, lobbyists pressured, rebates were given which helped the rich, and free passes used to look good in the press; in addition,

Enron boosted profits and hid debts, manipulated CA and TX energy, using off the books partnerships, and pay foreign government to win contract

As the demand for workers with college degrees increases the pile of debt students may graduate with gets bigger and bigger. This problem is America’s next sizeable financial crisis, but this crisis however is avoidable. Student loan debt is a financial bubble waiting to blow up just as the housing market collapse did in 2007, which the country is only just now starting to see signs of recovery from. The cost of a four-year degree has seen increases that surpass inflation and health care costs. Likewise, the amount of student loan debt is now greater than both auto loans and credit card debt. So, the question most frequently asked is, how has this happened?

There is a critical financial trend in the United States: student debt is at an all-time high. For the first time in mid- 2013, student debt rose to 830 billion, surpassing the credit-card debt (Clemmitt). Many economists and scholars compare the student debt crisis to the housing bubble, which resulted in a nationwide recession 2008. In a senate hearing regarding the current student debt crisis, Illinois Attorney General Lisa Madigan said, “The warning signs are there, just like they were before the housing crisis, and congress needs to act before it is too late” (Bidwell). After graduation, many students find it difficult to repay their debt, due to the bleak job market. According to a report published on the financial website Smart money, ten percent student loans borrowers defaulted in 2010 (Clemmitt). The percent was larger for students that attended a for-profit educational institution, like a career college; fifteen percent of these students defaulted (Clemmitt). Although the default rates do not contribute to the increasing student debt, one can compare it to the mortgage crisis when people stopped paying their mortgages and the American economy crashed. This exemplifies the critical problem that the student debt bubble if burst; it can have devastating impacts on the vulnerable American economy. Three causes for the increase in student debt are due to recent trends in college attendance, the increase of for-profit colleges and the rise of tuition due to spending

A social worker graduate from Tulane University wrote Sallie Mae an appeal to plead for a loan write-off, and“ they denied, stating that federal government regulation prevents them from writing off the balance of the loan” (Woodruff). I hope you see how extremely infuriating that is. These private companies are blaming the government, while the government does nothing for their citizens, and doesn’t punish companies like Sallie Mae. Learned helplessness is a concept in psychology, stating that someone who is subject to enough negative stimuli will eventually give in and learn to be helpless. Even given an opportunity to go free, the subject will not try to escape the helplessness, and rather embrace it. A victim of this situation clamors, “right now, there is no hope for me to achieve the American dream. I will never be able to own a home. I will not be able to save for retirement” and he continues, “please stop companies like Sallie Mae from victimizing helpless students who have been lied to by their schools and given loans they could never afford.” Schools that sometimes don’t even bear the proper accreditations to give out credits. For-profit universities in the United States receive more than $28 billion a year of federal aid. What is being done to make sure these institutions are reinvesting this money back

1) Summarize the student loan industry. Answer with respect to both public and private loans and be clear as to which you are referring to.

Since we were young, we 've been told that with hard work and determination in high school we would one day make it to college. Once there, if we succeeded with graduating, we 'd get a degree which would lead to a well paying career that would allow us to invest in our future. With college debt now leading in the nation 's debt with the growing amount of 830 million dollars, we are stuck asking. Why is the college-loan system failing? The College Bubble was a term used to explain the effect of the nation 's current financial crisis and college tuition constantly on the rise.

1. Matt Taibbi argues in his Rolling Stone article “Ripping Off America: The College-Loan Scandal” that the government, colleges and universities, are all perpetuating this scandal of ripping off unknowing students. He states that students have essentially been backed into a corner because any good paying job requires a 4 year degree, but the debt gathered in doing so makes life after getting a degree just as difficult. Taibbi’s first point of surprise was “In 2010, it estimated that one in five had defaulted on their loans since 1995, that 31 percent of community-college students default and that an astonishing 40 percent of students attending for-profit schools end up defaulting” (Taibbi). Pursuing a higher education is something that has been disguised as doable for everyone, but what such high defaulting percentages, the current method clearly does not support this. Furthermore, Taibbi went on to say that, “After the latest compromise, the 10-year revenue projection for the DOE 's lending programs is $184,715,000,000, or $715 million higher than the old projection - underscoring the fact that the latest deal, while perhaps rescuing students this coming year from high rates, still expects to ding them hard down the road” (Taibbi). This is surprising because it further shows that deceit is a very prominent theme when it comes to understanding and pursuing a higher education. They make it appear like they are finding a solution or trying to be fair, when their true

Due to the rapid process of globalization, the issue of whether socio-economic institutions and policies are converging or diverging across different nations has become controversial. Various literatures on comparative institutional studies has been developed, in which the Varieties of Capitalism approach by Hall and Soskice (2001) is one of the most significant concepts that is being widely discussed. According to Hall and Thelen (2005), the ‘varieties of capitalism’ is a firm-centered approach where firm is placed as a key actor and is being considered relational. It emphasizes the concept of institutional complementarities, which ‘…one set of institutions is complementary to another when its presence raises the returns